The construction sector is undergoing a transformation, with the use of new technologies stimulating new approaches to how buildings are constructed and several adjacent areas, according to industry analyst firm Transforma Insights. In a recent report, ‘Digital Transformation in the Construction Sector’, Transforma Insights identified nine key ‘domains of change’ in the construction sector that are being enabled by disruptive technologies such as the Internet of Things and Artificial Intelligence. In this article, we examined each of these domains and discuss the impact of their real-world deployment.
Worker Safety
Construction companies are using digitally transformative technologies to improve their worker’s safety to reduce human and capital loss due to on-site worker injuries. Poor management of worker’s wellbeing is detrimental to a workforce, and can result in financial losses, reduced project productivity and can handicap an employer’s access to funding. Deploying such technology-led solutions can reduce response times when workers are injured and enhance working conditions (resulting in lowered worker fatigue, project downtime, and enhanced productivity). Besides, lower jobsite accidents impact an organisations’ overall workers risk profile, helping to avoid the burden of higher insurance premiums.
According to the US Bureau of Labour Statistics, in 2019, almost 20% of worker injuries in the US were accounted for by private construction workers. In the US, companies need to comply with regulations such as the Occupational Safety and Health Act which requires a safe and hazard-free working environment for all employees. On average, in the USA 6-9% of construction project costs are workplace-injury related, and it has been observed that companies investing 2.5% of their project expenditure on safety training, reduce their jobsite accidents and increase their project profit by 4%-7%.
To help mitigate the effects of worksite risks, many construction companies have used emerging technologies. For instance, Texas-based Rogers-O’Brien Construction leveraged drone imagery to reduce the risks of site inspections and also decreased its site inspection costs by over 99%.
Site Security
Construction site security includes guarding against unauthorised access to jobsite facilities and equipment and materials used in construction, to guard against theft. Loss of construction materials hampers day-to-day operations, decreases productivity, and increases operational costs (due to workers sitting idle), reduces profitability, and impacts end users and project contractors (due to delayed projects). IoT-based solutions (such as smart CCTV cameras) can help construction companies to manage and alleviate security concerns by remotely monitoring building materials, equipment, and supplies.
AI-enabled security systems (such as AI-enabled robots) can be deployed to provide surveillance and security solutions in construction jobsites. For instance, Actuate provides AI-enabled intruder detection systems, using computer vision and existing construction site cameras for around-the-clock monitoring. US-based homebuilder, DR Horton deployed Pro-Vigil’s AI-enabled video monitoring solution (which instantly notifies stakeholders on detecting any suspicious activities) to provide round the clock construction site security. Turner Construction deployed an autonomous site security trailer, offering construction site security through video monitoring and achieved a decrease in the required frequency of jobsite visits.
Autonomous security robots (like Ziva or Boston Dynamics’ Spot) can be operated remotely to offer a 360-degree view of construction sites and can patrol on pre-programmed routes. Features can include facial recognition technology to assess and notify in case of any unauthorised entry into the construction site.
Construction Asset Tracking
Construction Asset Tracking refers to solutions that safeguard assets (equipment, machinery, consumables, and tools) and on-site fleet management in a construction project. Tracking and guarding such assets can prevent theft, improve operational efficiency, enhance worker productivity, and save significant costs. Additionally, access to asset utilisation can help contractors to achieve enhanced project efficiency by using its assets more effectively.
According to the National Equipment Register (NER), USD300 million to USD1 billion of construction equipment is stolen every year in the United States alone. Around 30% of tools and equipment purchased are used to replace stolen or misplaced on-site assets. Companies also lose around 35% of workers’ time, in searching for misplaced items or waiting for tools to arrive on the jobsite.
Connected devices attached to construction assets can share real-time data to not only bring visibility but also enhance efficiency via real-time monitoring. Using connected devices, companies can monitor equipment data including movement of machines, which in the case of equipment rental companies can result in increased transparency and accountability, and enhanced customer experience. As an example, Dalinghaus Construction used Hilti OnTrack for asset monitoring and better inventory management and enhanced business efficiency by saving unproductive worker time.
Autonomous Construction
Autonomous construction solutions (such as excavators, bulldozers, and skid steers) allow faster execution of repeatable and mundane tasks pre-programmed in an autonomous system. These solutions ensure better safety, increased on-site productivity (since mundane activities are taken care of by the solutions), and reduce labour dependency.
It is estimated that 90% of the world’s infrastructure projects are delivered late or over budget. Autonomous construction can finish projects 20% faster and at a decreased cost of 25%. For instance, Japanese equipment provider, Komatsu has developed fully autonomous bulldozers. Using terrain data, drones guide the bulldozers via three-dimensional mapping. Canada-based Pomerleau collaborated with Boston Dynamics to use its autonomous robot (Spot) and expects that its autonomous usage to collect site image data will reduce employees’ time by around 20 hours per week for a 500,000 sq. ft. project (typically requiring 5,000 images per week).
Autonomous bricklaying is also gaining prominence in the construction industry, and Hadrian X, a bricklaying robot can lay 1,000 bricks per hour, in comparison to 300-500 by humans. US-based Willhelm Construction used SAM100 (a Semi-Automated brick-laying robot) and achieved a 400% increase in bricklaying from 400 (by human) to 2,000 bricks per day.
Enhanced Project Management
These solutions are used in the construction industry to achieve significant operational efficiency by better planning, coordination, and execution, through sharing of real-time and other data for better collaboration between stakeholders. These solutions can also assist in early identification of any construction design flaws, which can result in reduced project completion time due to lowered rework.
Construction software solutions support project managers to achieve better visibility of construction assets and resources, enabling better asset and resource management and increasing the chances of meeting project deadlines. AR/VR can be used to support virtual tours of the building designs and structures. This can help in easy identification of design flaws upfront, and contractors can work accordingly, potentially reducing rework. AR/VR can also reduce travel time and reduce the need for workers to visit hazardous locations.
Drones are also being leveraged to generate accurate images of construction areas for site surveillance and inspections. Brasfield & Gorrie used DroneDeploy and identified that the as-built works had deviations from the as-designed project, saving the company USD10,000 in rework costs.
Digitised Concrete Management
Digitised concrete management solutions refer to the real-time embedded concrete sensors, that are slowly gaining prominence in the market due to the increased efficiencies that they enable. Concrete sensors are embedded in freshly poured concrete to provide accurate monitoring of the concrete’s temperature, maturity, hydration, stiffness, compressive strength, and other critical properties. Smart concrete sensors can lower project time and cost by up to 30%, and the sensors themselves generally add less than 0.1% to the overall construction budget.
For example, to eliminate time-consuming concrete temperature monitoring methods, Canada-based P. W. Graham & Sons Construction partnered with SmartRock concrete sensors and achieved a 90% accuracy in maturity-based strength estimation. It also witnessed 85% lower labour dependency.
In another example, Contiga wanted used a concrete monitoring solution to eliminate the use of data loggers and manual data collection. Post deployment of Maturix concrete sensors, the company reduced its production time by over 15%, curing time for wall elements by almost 25%, and reduced damage risks and slippage waste.
Canada-based Dexter used Giatec SmartRock wireless sensors to track concrete curing in Nova Scotia and witnessed a two-day time savings per concrete pour enabling earlier form stripping, and 65% fewer break tests. Giatec Scientific’s SmartRock wireless concrete monitoring solution has supported over 9,000 construction projects in more than 85 countries.
Next Generation Construction
Additive Manufacturing is often used synonymously with 3D printing, and CAD (Computer Aided Design) can be used to generate 3D models and fabricate 3D objects. In an industrial context, these solutions can be used to manufacture products that can’t be manufactured using traditional techniques. They can also increase operational efficiencies and enhance customer experience.
A prominent emerging use case of these solutions is 3D designed and printed homes, which are more customisable and affordable, require less manual labour to construct, and can be delivered in much less time. Such homes can be more environmentally friendly as well.
According to the Modular Building Institute, modular construction takes 25%-50% less time and consumes around 17% less material compared to conventional construction.
Digital Marketplace
Digital Marketplace solutions assist contractors and developers in procuring rented equipment, tools, and machinery. This reduces the tedious task of procuring, delivering, and management of construction assets, resulting in reduced operational expenses and improved bottom line profits. This also enables easier access to specialised equipment for specific tasks, and such solutions are also beneficial for contractors engaging in short-term projects.
Some online rental providers also offer telematics solutions providing them with real-time equipment and machinery data including location and usage of their rented assets.
Renting construction assets is often economically viable for both renter and owner, as on an average construction equipment remains idle for 70% of the time. After deploying EquipmentShare’s fleet management solution, Lindamood Demolition achieved a 65% increase in fleet utilisation and reduced its rental costs by 25%.
Enhanced Project Collaboration using BIM
Building Information Modelling supports multiple stakeholders to plan, design, execute, and collaborate on a single platform. It is a software solution which reflects changes in a building after changes to any elements on the building. It helps contractors to better collaborate, reduce rework, and in lowering documentation errors.
In the US, poor project data and lack of communication tools across stakeholders cost contractors and project managers USD31 billion of rework in 2018.
For example, Robins and Morton leveraged BIM to build Augusta Hospital in Maine, delivering the project 10 months ahead of schedule and with a saving of USD20 million. In another example, to develop a wider expressway when revamping the JiHe expressway, China’s Ministry of Transportation awarded the contract to CCCC First Highway Consultants Company, which used a BIM system to shorten the design time by 68 days and save the company USD2.94 million.
About the report
The Digital Transformation in the Construction sector report focusses on digital transformation in the Construction sector as enabled by the key technology groups that are the focus of Transforma Insights’ research. These technology groups include: 3D Printing & Additive Manufacturing, Artificial Intelligence, Autonomous Robotic Systems, Distributed Ledger, and Internet of Things (IoT).
The purpose of the report is two-fold. Firstly, from the perspective of a practitioner in the Construction industry, the document highlights new and emerging aspects of change that can be expected to impact the industry in the next few years. Secondly, from the perspective of potential vendors to the Construction industry, it highlights key emerging areas of opportunity to sell new products, services, and solutions to the Construction industry. Our analysis of the key technologies that enable each of the identified areas of digital transformation will help vendors of horizontal (technology-specific) capabilities to identify the contexts in which they may be able to secure new business from the Construction sector.
Paras Sharma 
Joydeep Bhattacharyya 